Surprise OKs cell-tower ground lease at Rancho Mercado and outlines broader city-hosted tower program
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Summary
Council approved a 10-year ground lease with options for a new multi-carrier cell tower at the Rancho Mercado water facility and discussed a broader effort to site towers on city-owned property to address coverage and capacity issues across growing neighborhoods.
The Surprise City Council unanimously approved a ground-lease agreement May 6 to allow a multi-carrier cell tower at the Rancho Mercado water supply facility on Happy Valley Road and discussed a wider program to place wireless infrastructure on city-owned sites.
City staff told the council the Rancho Mercado lease covers a 1,572-square-foot leased compound at the northeast corner of Happy Valley Road and 140th Drive; the initial lease term is 10 years with three optional five-year renewals. Rent will begin at $1,800 per month with an annual 2.5% escalation and contract language providing a 20% revenue share for the addition of second, third or fourth carriers on the tower.
Staff said the tower will be developed by New Singular Wireless and will include a separate gated entrance; the lease requires the company to complete site planning and engineering and to begin construction within 12 months of approval. The council packet listed other city-owned sites under negotiation or near-final agreement, including a Desert Oasis site expected to begin construction this summer, and potential towers at a fire station, a west-side pocket park and a wastewater-treatment site.
Councilmembers framed the effort as a practical response to residents' complaints about poor service and to public-safety needs. One councilmember said social-media posts had created a perception the city was blocking improvements; staff replied that private landowners and not the city had been the constraints in many locations, and that the administration is now opening city property as site options. Another councilmember described the initiative as "treating wireless like a utility" as the city plans for future growth.
Council members asked about litigation venue and were told disputes would be resolved locally. Staff noted the city is also exploring HOAs and additional technologies including 5G to add capacity, especially along heavy-traffic corridors such as Bell Road. The council approved Resolution No. 2025-53 on a unanimous vote.
What to expect next: staff said developers will submit required engineering and planning documents and the Rancho Mercado tower would proceed through the city's standard permitting process; staff also said they will continue site negotiations for additional city-owned locations.
